1. Opening Hook
After years of being treated like the forgotten cousin of the ethanol boom, Gulshan Polyols suddenly decided to wake up and choose violence — against losses.
Q2 FY26 came with a 23% revenue jump, EBITDA exploding 140%, and PAT doing a four-digit growth number that looks illegal without context. Management proudly called it a “U-turn recovery,” which in Gulshan’s case is not exaggeration — it’s therapy.
Ethanol prices didn’t change. Government didn’t suddenly become generous. What changed? Grain prices cooled off, plants matured, and management finally stopped feeding a loss-making starch business.
Add PLI incentives waiting to hit the P&L, improving capacity utilization, and a clearer roadmap to ₹2,800 crore revenue by FY27 — and suddenly, Gulshan is no longer whispering.
Read on. The recovery story sounds confident, but the fine print still matters.
2. At a Glance
- Revenue up 23% – Ethanol volumes climbed, and grain chaos took a break.
- EBITDA up 140% – Margins didn’t expand, they detonated.
- PAT up ~1000% – When the base is depressed, miracles happen.
- PLI ₹5.34 cr booked in Q3 – “Other income” doing heavy lifting soon.
- Working capital borrowings at ₹250 cr – Growth eats cash before it prints it.
- Starch temporarily shut – Ego parked, profitability prioritized.
3. Management’s Key Commentary
“We have shown a 23% YoY growth on the revenue front.”
(Translation: Volumes
are back, pricing didn’t kill us 😏)
“EBITDA has grown by 140% YoY.”
(Translation: Raw material correction saved the quarter.)
“PAT has grown by almost 1,000%.”
(Translation: Last year was painful, don’t ask.)
“The company is on a U-turn recovery mode.”
(Translation: We survived, now we’re optimizing.)
“PLI of ₹5.34 crores will be treated as other income.”
(Translation: Q3 will look nicer.)
“We temporarily shut starch as it wasn’t covering variable cost.”
(Translation: Finally, discipline over volume.)
“We don’t compromise on margins in mineral processing.”
(Translation: We’d rather lose customers than pricing power.)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Change |
|---|---|---|
| Revenue | +23% | Strong |
| EBITDA | +140% | Sharp rebound |
| PAT | ~10x | Low base magic |
| Working Capital Borrowing | ~₹250 cr | Growth-led |
| Ethanol Allocation | 17.5 cr litres | ESY 25–26 |
| FY27 Revenue Target | ~₹2,800 cr | Aspirational |
Decoded: This quarter wasn’t about pricing power — it was about cost normalization and plant maturity.
5. Analyst Questions (Decoded)
- Why borrowings jumped?
Management: Working capital for higher revenue.
(Translation: Growth isn’t free.) - Is grain processing
